The acquisition by Managem of the Moroccan subsidiary of Sound Energy East (SEME) is a significant event in the Moroccan energy landscape. This operation is part of a global context where the energy transition and the diversification of energy sources have become strategic priorities for many countries.
In Morocco, this transaction is of particular importance because it strengthens the country’s energy independence, stimulates its industrial development and positions Managem as a key player in the gas sector in Africa.
A strategic step towards Morocco’s energy self-sufficiency
The Managem group, majority owned by the royal holding company Al Mada, acquired Sound Energy Morocco East Ltd for an amount of $45.2 million. “This investment allows Managem to hold 55% of the Tendrara exploitation concession, 47.5% of the Grand Tendrara and Anoual exploration permits. This transaction, although modest in terms of size, is of crucial strategic importance for Morocco. The Tendrara project, covering an area of 23,000 km² in the eastern province of Morocco, is estimated at 10.67 billion cubic meters of natural gas.explains to Hespress Fr the professor of economic, social and political sciences at the Mohammed V University of Rabat and former economist at Bank Al-Maghrib, Dr Talal Cherkaoui.
Indeed, continues Dr Cherkaoui, “The first phase of development, planned for mid-2025, aims to produce 100 million cubic meters of liquefied natural gas (LNG) per year. The second phase, still under study, envisages the construction of a processing unit and a pipeline connecting the Maghreb-Europe Gas Pipeline (GME), making it possible to supply 280 million cubic meters per year. This acquisition is part of Morocco’s national strategy aimed at achieving energy self-sufficiency and diversifying its energy sources. The integration of Managem into the gas sector reinforces this strategy by ensuring a stable and local supply of natural gas, thereby reducing the country’s dependence on imports”.
Economic impact and industrial development
The acquisition of the Moroccan subsidiary of Sound Energy by Managem is, in the opinion of the professor of economic, social and political sciences, “perceived as a major step towards Morocco’s energy independence”. According to Imad Toumi, CEO of Managem, this operation contributes not only to the country’s energy security but also to its trade balance. “In effect, local production of natural gas reduces the need for imports, thereby saving foreign exchange and boosting the national economy”notes Dr Cherkaoui.
And also to emphasize that “The Tendrara project is also crucial for the industrial development of Morocco. The availability of a clean, less expensive source of energy is essential for local industries, which will benefit from more competitive energy rates. This could also attract more foreign investment into the Moroccan industrial sector, thereby strengthening the country’s position as an industrial hub in Africa..
Diversification of activities and Pan-African expansion of Managem
Beyond Moroccan borders, Dr Cherkaoui affirms that “Managem has clear ambitions for diversification and pan-African expansion”. “The group is actively seeking other gas assets in Africa, aiming to strengthen its portfolio and contribute to the continent’s energy development”he said, observing that “this diversification strategy is crucial to mitigate the risks associated with the volatility of commodity markets and to ensure sustainable growth”.
Managem’s diversification into the gas sector complements its existing metals portfolio, which includes cobalt, copper, zinc, gold and silver. “This diversification allows the group to stabilize its revenues and ensure economic resilience in the face of fluctuations in the prices of metals and raw materials”notes the professor.
Issues and perspectives
The acquisition of Sound Energy Morocco East Ltd by Managem raises several issues and challenges. “On the one hand, the success of the Tendrara project depends on Managem’s ability to obtain the necessary regulatory authorizations and overcome the technical obstacles linked to the exploration and production of natural gas. On the other hand, the success of this operation requires effective investment management and close collaboration with local and international partners”, explains Dr Cherkaoui. As for the prospects for the Moroccan gas sector, the professor believes that “they are promising”.
“Morocco, which currently imports the majority of its gas needs, is expected to see a significant increase in its domestic production thanks to the Tendrara project. This increase in local production is essential to meet the country’s growing energy demand, estimated at 8 billion cubic meters per year by 2030. Managem’s acquisition of Sound Energy’s Moroccan subsidiary represents a strategic step towards the achievement of Morocco’s energy objectives. By strengthening the country’s energy independence, stimulating industrial development and diversifying its activities, Managem positions itself as a key player in the energy transition in Morocco and Africa. This operation highlights the importance of investments in clean and sustainable energy to ensure stable and resilient economic growth”indicates the former economist at Bank Al Maghrin.
And to conclude that “Managem’s acquisition of Sound Energy’s Moroccan subsidiary is a striking example of how Moroccan companies can play a crucial role in the country’s energy development. By diversifying its activities and engaging in the gas sector, Managem contributes significantly to Morocco’s energy independence, economic stability and industrial growth. This operation also illustrates the potential for collaboration between national and international actors to address global energy challenges and promote sustainable development.”.
